JUBILANT PHARMOVA 2021-22 Annual Report Analysis

Tue, 13 Sep

JUBILANT PHARMOVA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

JUBILANT PHARMOVA Income Statement Analysis

• Operating income during the year rose 0.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.9% in FY22 as against 22.6% in FY21.
• Depreciation charges increased by 9.4% and finance costs decreased by 21.0% YoY, respectively.
• Other income declined by 36.0% YoY.
• Net profit for the year declined by 24.8% YoY.
• Net profit margins during the year declined from 9.2% in FY21 to 6.9% in FY22.

JUBILANT PHARMOVA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	60,985	61,302	0.5%
Other income	Rs m	176	113	-36.0%
Total Revenues	Rs m	61,162	61,415	0.4%
Gross profit	Rs m	13,752	11,563	-15.9%
Depreciation	Rs m	3,489	3,817	9.4%
Interest	Rs m	1,841	1,455	-21.0%
Profit before tax	Rs m	8,598	6,404	-25.5%
Tax	Rs m	2,972	2,174	-26.8%
Profit after tax	Rs m	5,626	4,230	-24.8%
Gross profit margin	%	22.6	18.9
Effective tax rate	%	34.6	34.0
Net profit margin	%	9.2	6.9

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JUBILANT PHARMOVA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 16 billion as compared to Rs 10 billion in FY21, thereby witnessing an increase of 51.7%.
• Long-term debt down at Rs 25 billion as compared to Rs 26 billion during FY21, a fall of 3.9%.
• Current assets rose 19% and stood at Rs 35 billion, while fixed assets rose 9% and stood at Rs 63 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 98 billion as against Rs 88 billion during FY21, thereby witnessing a growth of 12%.

JUBILANT PHARMOVA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	47,407	53,149	12.1
Current Liabilities	Rs m	10,488	15,916	51.7
Long-term Debt	Rs m	25,640	24,642	-3.9
Total Liabilities	Rs m	87,634	98,296	12.2
Current assets	Rs m	29,525	35,092	18.9
Fixed Assets	Rs m	58,109	63,204	8.8
Total Assets	Rs m	87,634	98,296	12.2

JUBILANT PHARMOVA Cash Flow Statement Analysis

• JUBILANT PHARMOVA 's cash flow from operating activities (CFO) during FY22 stood at Rs 8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -326 million, an improvement of 98% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 5 billion from the Rs -7 billion net cash flows seen during FY21.

JUBILANT PHARMOVA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	17,843	8,375	-53.1%
Cash Flow from Investing Activities	Rs m	-7,390	-3,804	-
Cash Flow from Financing Activities	Rs m	-17,094	-326	-
Net Cash Flow	Rs m	-7,289	4,819	-

Current Valuations for JUBILANT PHARMOVA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.6, an decline from the EPS of Rs 35.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 329.5, stands at 17.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 13.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	382.9	384.9
TTM Earnings per share	Rs	35.3	26.6
Diluted earnings per share	Rs	35.3	26.6
Price to Cash Flow	x	11.9	13.0
TTM P/E ratio	x	16.9	17.5
Price / Book Value ratio	x	2.2	2.0
Market Cap	Rs m	103,365	104,317
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for JUBILANT PHARMOVA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY22, from 2.8x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 5.4x during FY22, from 5.7x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 8.0% during FY22, from 11.9% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 10.1% during FY22, from 14.3% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 5.8% during FY22, from 8.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.8	2.2
Debtors’ Days	Days	49	55
Interest coverage	x	5.7	5.4
Debt to equity ratio	x	0.5	0.5
Return on assets	%	8.5	5.8
Return on equity	%	11.9	8.0
Return on capital employed	%	14.3	10.1

To see how JUBILANT PHARMOVA has performed over the last 5 years, please visit here.

JUBILANT PHARMOVA Share Price Performance

Over the last one year, JUBILANT PHARMOVA share price has moved down from Rs 619.7 to Rs 329.5, registering a loss of Rs 290.2 or around 46.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 23,293.4 (up 0.2%). Over the last one year it has moved down from 26,612.1 to 23,293.4, a loss of 3,319 points (down 12.5%).

Overall, the S&P BSE SENSEX is up 3.9% over the year.

(To know more, check out historical annual results for JUBILANT PHARMOVA and quarterly results for JUBILANT PHARMOVA )

Read: Latest Annual Report Analysis of JUBILANT PHARMOVA